One of the most crucial questions entrepreneurs ask when setting up a company in the UK is, “How long does it take?“The UK company formation process may vary depending on the method used and the frequency with which one provides the requirements.
Forming a company online generally takes 24 hours. You may take the first 5 to 10 minutes to fill out your online application form and submit it to Companies House for approval. This article will explore factors that may affect the company formation timeframe and highlight what you can do if you need your company registered and trading within a day.
Factors affecting company formation time
The duration of establishing a company in the UK is affected by several factors that can either expedite or delay the process.
Method of registration:
You can register your company through the postal application form or online registration. Online registration generally takes 24 hours to approve the application, while the postal application may take 8 to 10 days.
Accurate and complete documentation:
Having the necessary documents may ease and ensure timely company formation. Missing certain documents or the back and forth of correcting documents will delay the process or even lead to the rejection of company formation.
Companies House processing time:
As much as Companies House takes 24 hours to approve a company formation application, the time may vary. During busy periods or if their system is down, processing time can be longer. They, however, ensure to let you know if there is any problem at their end to make you aware.
Type of service:
If you want your company up and running within a day, you will need to include ‘same-day service’ in your order. Companies House and company formation agents offer this professional service.
Considering these factors, entrepreneurs can plan effectively to ensure their application process aligns with their business goals and desires. In the next section, we will explore the expedited company formation process known as the “same-day” service.
Understanding the ‘same-day’ company formation service
Entrepreneurs who are in a hurry to set up their company can use the expedited formation option, the turnaround time of which is quicker than the normal process. This service, offered by Companies House and company formation agents, allows you to receive your Certificate of Incorporation on the same day you submit your application.
The service comes at an extra cost, but it is worth investing in if time is of the essence for your business. Company formation agents have expertise in navigating the complexities of company formation to ensure the process is expedited. Unlike using the Companies House website, where you have to fill out the forms and submit them, company formation agents do all the preparation and submission of the necessary documents on your behalf.
Common delays of company formation and how to avoid them
Delays can occur when establishing a company in the UK, potentially affecting the timeline. The potential setbacks include;
Application rejection
When Companies House rejects your application due to errors or incomplete documents, the overall timeline will be delayed. This means you will need to do the whole process again for the application to be approved.
To avoid this, ensure that all information is accurate and complete. It is important to double-check before submitting the documents. Entrepreneurs can also consider using professional services such as company formation agents who are well-versed in the process. Before submitting the documents to Companies House, they will ensure they are up-to-date and meet the standards required.
Outstanding fees
Outstanding fees with Companies House or a company formation agent can delay the process of forming a company. The process can only start when the full payment has been made. It is important to settle all outstanding fees to expedite the formation process. Additionally, ensure you have set aside the money needed to form your company.
Chosen company name
If your company name does not comply with the regulations set by Companies House, it can bring issues with the application, which will delay the process. Your company’s chosen name should be distinctive, unique, not offensive, and not the same or similar to existing companies. Names that suggest a connection with the Crown or government are prohibited. One must obtain permission to use sensitive words or expressions in a company name.
Entrepreneurs should use the Companies House availability checker to see if their proposed names are available and unique.
Requirements needed to set up a company
Now that we understand that inaccurate and incomplete documents can cause delays or rejections in the company formation process, we will examine the information required by Companies House for a successful and timely application.
Company name: The name should be unique, distinctive, and not offensive or the same or similar to existing names.
Registered office address: Ensure it is an appropriate address, meaning it is physical and not a P.O. Box address. The address should be located in the same jurisdiction as the company’s registration, where official correspondence can be sent and acknowledged by someone acting on behalf of the company. If you are a non-UK resident and want to incorporate a UK-limited company, you can rent a London virtual office address to use as your registered office address. If you wish to register your business in London, consider renting a virtual office in the city from your service provider.
Business activity: State the main service or products your business is dealing with.
Standard Industrial Classification (SIC) code: These codes describe your company’s main business activity.
Minimum of 1 director’s details: Their name, date of birth (must be at least 16 years old), nationality, residential address, and contact information.
Minimum of 1 shareholder’s details: Their name, contact information, nationality, residential address, and the number of shares.
Company secretary details (optional)
Person with significant control (PSC) details: Their name, service address, residential address, date of birth, nature of control, and nationality.
Memorandum of Association: This is a declaration confirming that the shareholders have agreed to establish a company.
Articles of Association: This states rules and regulations on how the company will be governed.
How long does it take to form a company in the UK? As we have seen above, the time taken to register a company can vary depending on various factors. Typically, online company formation takes around 24 hours, which includes 5 to 10 minutes for completing the application. If you choose the postal application, the process will take 8 to 10 days. However, entrepreneurs in a rush to have their business up and running can choose same-day company formation services, which come at an extra cost.
To ensure your company formation timeline is not delayed, entrepreneurs can start the application process in the morning for a ‘same-day’ formation service. To avoid disruptions from weekends and public holidays, entrepreneurs should start the application at the beginning of the week.
If any mistakes are made in the application form, you will have to correct them and resubmit to Companies House. This will significantly cause a delay and additional costs.
Need an expedited company formation service? BusinAssist has got you covered. With their well-versed experience, they ensure your company is up and running on the same day of application submission at affordable costs.
For more information, contact them at [email protected].
